Capital Small Finance Bank Limited · NSE:CAPITALSFB
Capital Small Finance Bank — Q1 FY25 Earnings Presentation
27 slides from Capital Small Finance Bank's earnings presentation, Jul 31, 2024
Slide 1: Exchange filing cover letter for earnings call presentation
CSFB. 2024-25/203 July 31, 2024 To, BSE Limited National Stock Exchange of India Limited Listing Compliance The Listing Department, Phiroze Jeejeebhoy Towers Exchange Plaza, Dalal Street Bandra Kurla Complex, Mumbai 400 001 Mumbai - 400 051 Maharashtra Maharashtra Scrip Code: 544120, 951995 & 953739
Slide 2: Investor Presentation Q1FY25
Investor Presentation Q1FY25
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Capital Small Finance Bank Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe f
Slide 4: Differentiated Bank focused on middle-income segment
Differentiated Bank focused on middle-income segment Experience of over 2 decades in the Banking Industry* Diversified Credit Targeted towards Middle- Embracing Retail Consistent Profitability Portfolio with Zero direct Robust Asset Quality income customer Liability Strategy Growth Microfinance Expo
Slide 5: Key Highlights Q1FY25
Key Highlights Q1FY25 Gross Advances Profit After Tax CASA Ratio Retail Deposit Ratio INR 6,391 crores INR 30 crores (Q1FY25) As of June 2024 INR 28 crores (Q4FY24) 39.5% 94.5% +19% CAGR^ +42% CAGR +4% QoQ +6% QoQ +16% YoY Deposits ROA Asset Quality CRAR INR 7,778 crores 1.3% As of June 2024 As of Q
Slide 6: Retail Focused Liability Franchise with High Share of CASA
Retail Focused Liability Franchise with High Share of CASA CAGR^ - 15% Total Deposits In INR Crores In INR Crores QoQ 4 % 4,447 5,221 6,046 6,561 7,478 7,778 7,478 7,064 CASA % 36.3% 40.1% 42.2% 41.9% 38.3% CASA % 40.0% 38.3% 39.5% YoY 10 % FY20 FY21 FY22 FY23 FY24 Q1FY24 Q4FY24 Q1FY25 Funding Mix –
Slide 7: Diversified & Secured Advance Portfolio
Diversified & Secured Advance Portfolio Gross Loan Book CAGR^ - 19% In INR Crores QoQ 4 % 6,160 6,391 6,160 5,519 5,507 4,689 3,763 3,326 Secured Lending % 99.8% 99.9% 99.8% YoY 16 % 99.1% 99.4% 99.7% 99.8% 99.9% Q1FY24 Q4FY24 Q1FY25 FY20 FY21 FY22 FY23 FY24 Diversified Portfolio & non reliance on M
Slide 8: Industry Leading Asset Quality signifying underwriting strength
Industry Leading Asset Quality signifying underwriting strength Asset Quality Asset Quality (YoY) 2.8% 2.8% 2.7% 2.8% 2.8% 2.5% 2.1% 1.8% 1.4% 1.4% 1.3% 1.4% 1.4% 1.4% 1.3% 1.1% Q1FY24 Q4FY24 Q1FY25 FY20 FY21 FY22 FY23 FY24 GNPA NNPA GNPA NNPA Almost NIL write-offs1 & Credit Cost2 NPA Table ZERO NPA
Slide 9: Consistently Improving Profitability
Consistently Improving Profitability Profit After Tax CAGR^ - 42% In INR Crores QoQ 6 % 30.1 30.0 111.5 28.2 93.6 62.6 40.8 25.4 Q1FY24 Q4FY24 Q1FY25 FY20 FY21 FY22 FY23 FY24 • Demonstrated consistent improvement in RoA1 RoE2 Opex Ratio%3 return metrices: ROA 2.5x since FY19 (Calculated on enhanced
Slide 10: …..And Return Ratios
…..And Return Ratios Key Business Parameters Q1FY24 Q4FY24 Q1FY25 FY22 FY23 FY24 CRAR (%) Credit to deposit ratio (Avg) 80.1 78.3 79.6 70.6 78.0 79.0 (%) Credit to deposit ratio 78.1 82.4 82.2 77.5 83.9 82.4 (Outstanding) (%) 27.4% 26.3% Yield on Advances 11.0 11.0 11.2 10.9 10.8 11.1 20.8% Cost of
Slide 11: Strategic Focus and Outlook for FY25
Strategic Focus and Outlook for FY25 • Targeting existing segments – MSME & Trading, • Utilizing brand strength to bolster retail Mortgages, and Agriculture. deposit growth. Key Outcomes • Capitalizing on anticipated tailwinds in • Sustaining the CASA ratio middle-income segments. • Focus on deepeni
Slide 12: Company Overview
Capital Small Finance Bank 3% Company Overview
Slide 13: From LAB to India's first SFB and towards India's most trusted Bank
From LAB to India’s first SFB and towards India’s most trusted Bank 2016 2019 - 2020 2022 2024 Small Finance Bank Total business of the Bank Net Profit of the Bank zoomed Successfully listed on NSE crossed ₹6,000 crores to ₹63 crores registering a and BSE on 14th February Conversion to India’s First
Slide 14: ..executed by an experienced Management Team
..executed by an experienced Management Team SARVJIT SINGH SAMRA MUNISH JAIN PROMOTER, MANAGING DIRECTOR & CEO EXECUTIVE DIRECTOR 36+ years of experience across banking & 23+ years of experience in the banking financial industry across various roles. sector across finance, compliance, Associated wit
Slide 15: …and guided by seasoned members of the Board
…and guided by seasoned members of the Board NAVIN KUMAR MAINI SARVJIT SINGH SAMRA MUNISH JAIN PART TIME CHAIRMAN & MANAGING DIRECTOR & EXECUTIVE DIRECTOR NON-EXECUTIVE CEO INDEPENDENT DIRECTOR • 40+ years of experience in the • 36+ years of experience across • ~23+ years of experience in the bankin
Slide 16: Providing a wide Range of Products and Services
Providing a wide Range of Products and Services Comprehensive bouquet of Services under one-roof Loan Portfolio Deposit Portfolio Fee-based Products Other Services Agricultural Savings Account Insurance Products Branches Kisan Credit Card Capital Savings A/c Agricultural Term Loan Capital Super Savi
Slide 17: ..with an Increasing presence to enhance accessibility
..with an Increasing presence to enhance accessibility Geographical Mix Rural-Urban Mix Punjab 152 Rural Areas 41.2% UT Chandigarh 2 Haryana 16 Semi-Urban Areas 34.5% Rajasthan 3 NCR 3 Urban Areas 24.3% Himachal Pradesh 1 Total 177 Total 100.0% Highest branch concentration towards rural and semi-urb
Slide 18: Our Strengths built over 20 years by focusing on our customers
Our ‘Strengths’ built over 20 years by focusing on our customers Retail focused liability Customer centric approach and 01 deep understanding of target 04 franchise with high CASA share customers • High CASA1 ratio 39.5% with 94.5% retail deposits • Serving financial needs of middle-income segment w
Slide 19: Delivering Digital Empowerment to Our Customers
Delivering Digital Empowerment to Our Customers Share of Digital Transactions Personalised Data-Driven Processes in non-cash Transactions • Leverage technology and data analytics for Q-o-Q scalability and profitable growth • Improve collection efficiency through data driven 89% 84% early warning sys
Slide 20: Assets and Liabilities Overview
Assets and Liabilities Overview
Slide 21: Well-Diversified Credit Portfolio
Well-Diversified Credit Portfolio Agricultural Loans Mortgage Loans MSME & Trading Loans Other Loans AUM of Rs 27% 21% 18% 1,127 Cr 35% • Working Capital facility Consumption & other loans: Corporate loans: • Kisan Credit Card • Housing Loan (CC / OD/WCTL) • Auto Loans • Term loans to NBFCs • Agricu
Slide 22: Our Robust Credit Assessment and Risk Management Practices
Our Robust Credit Assessment and Risk Management Practices …have led to Industry leading Asset Quality Dedicated customer relationship team to maintain healthy customer engagement 2.7% Well-defined credit assessment matrix based on risk profile of the borrowers GNPA as of Jun-24 Secured lending prim
Slide 23: Retail-focused Liability Franchise & Diversified Advance Book
Retail-focused Liability Franchise & Diversified Advance Book Total Deposits FY22 FY23 FY24 FY25 In INR Crores 7,478 6,059 6,046 6,561 5,483 5,571 6,700 6,561 7,778 6,046 6,162 6,185 7,064 7,000 7,482 7,478 5,221 4,447 CASA 38% 40% 42% 42% 38% CASA Ratio 40% 40% 43% 42% 43% 42% 44% 42% 40% 38% 39% 3
Slide 24: Annexures
Capital Small Finance Bank 3% Annexures
Slide 25: Statement of Assets and Liabilities
Statement of Assets and Liabilities Particulars (INR Cr) FY22 FY23 FY24 CAGR% Q1FY24 Q4FY24 Q1FY25 QoQ% YoY% Capital & Liabilities Shareholders Funds 516 611 1,197 37% 691 1,197 1,233 3% 79% Deposits 6,046 6,561 7,478 15% 7,064 7,478 7,778 4% 10% Borrowings 498 721 472 696 472 466 Other Liabilities
Slide 26: Statement of Profit and Loss
Statement of Profit and Loss Particulars (INR Cr) FY22 FY23 FY24 CAGR% Q1FY24 Q4FY24 Q1FY25 QoQ (%) YoY (%) Interest Earned 578 676 794 189 204 218 Interest expended 323 354 449 102 117 119 Net Interest Income (NII) 255 322 345 21% 87 87 99 14% 14% Other Income 54 50 67 13 20 17 Net Total Income 310
Slide 27: Thank You!
THANK YOU ! Company: Capital Small Finance Bank Limited Investor Relation Advisors: Strategic Growth Advisors Pvt. Ltd. CIN: L65110PB1999PLC022634 CIN: U74140MH2010PTC204285 Mr. Sahil Vijay / Ms. Bharti Babutta Mr. Aakash S Mehta / Mr. Abhishek Shah investorrelations@capitalbank.co.in aakash.s.m@sga
Capital Small Finance Bank — Q1 FY25 Earnings Presentation on 6ix